A major area of our trial and business law practice consists of non-compete and trade secrets law. We hear all the time from people that believe Iowa is a “right to work” state so that means non-competes are not upheld under Iowa law, right? Wrong.

Non-competes are upheld in cases where the scope and duration of the restrictive period is reasonably necessary to protect the employer’s interest as compared to the employee’s interest. Whether the non-compete will be upheld various greatly on the wording of the agreement and the position held by the employee.

But in a recent article from Seyfarth Shaw on some of the top developments in trade secret, non-compete law and computer fraud, I found it really interesting that government agencies are increasing the scrutiny of non-compete agreements. This is especially true in the case of certain franchises who had “no poach” provisions in their agreements. Lots of times these policies are used to prevent lower-wage workers from moving to higher paying jobs. Often fast food franchise operators have been found to have these sorts of provisions in their agreements. Attorney generals in several states alleged these provisions limited the earning potential of these lower wage employees and many franchisors decided to remove the clauses in the agreements due to pressure from the attorney generals.

Please be sure to read the article link for other interesting developments including a $700 million to a technology start-up In Texas for damages in a misappropriation of trade secrets case.

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Rush Nigut is a shareholder with the Brick Gentry Law Firm in West Des Moines, Iowa. His practice includes both transactional and litigation matters including franchising and business law. Rush started his legal blog, Rush on Business, in 2006. He has been quoted…

Rush Nigut is a shareholder with the Brick Gentry Law Firm in West Des Moines, Iowa. His practice includes both transactional and litigation matters including franchising and business law. Rush started his legal blog, Rush on Business, in 2006. He has been quoted or referenced by hundreds of other blogs, websites, and publications. He also is the editor of the Brick Gentry Trial Team blog and can help you identify the most qualified lawyer at Brick Gentry to handle your case. Our lawyers have a breadth of trial experience in personal injury, employment discrimination, business litigation, IP law, and class action cases.